LPEM FEBUI Quarterly Economic Outlook 2016 Q1
Febrio Kacaribu (),
Alvin Ulido Lumbanraja and
Faradina Alifia Maizar
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Febrio Kacaribu: Institute for Economic and Social Research, Faculty of Economics and Business, Universitas Indonesia (LPEM FEB UI)
Alvin Ulido Lumbanraja: Institute for Economic and Social Research, Faculty of Economics and Business, Universitas Indonesia (LPEM FEB UI)
Faradina Alifia Maizar: Institute for Economic and Social Research, Faculty of Economics and Business, Universitas Indonesia (LPEM FEB UI)
No 201601, LPEM FEBUI Quarterly Economic Outlook from LPEM, Faculty of Economics and Business, University of Indonesia
Abstract:
Improvements of global sentiment and unconventional policy easing in developed economies have benefitted Indonesian economy considerably; there is now less pressure on Bank Indonesia to reduce excess Rupiah volatility as capital outflow from Rupiah-denominated securities has slowed, and persistently low commodity prices have held down inflationary pressure. These two factors have allowed Bank Indonesia to start reducing target interest rates at current pace. Simultaneously, the effects of structural reforms by Jokowi administration, particularly in area of deregulation and infrastructure investments, may also help boost confidence of investors. This combination of favorable external conditions and government efforts are behind the recent increase in growth of gross fixed capital formation, a promising sign for the outlook of 2016 as a whole.
Keywords: gdp; —; economic; quarterly; —; economic; outlook; —; inflation; —; macroeconomics (search for similar items in EconPapers)
Date: 2016-01, Revised 2016-01
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http://lpem.org/repec/lpe/queouts/IEO201601.pdf First version, 2016 (application/pdf)
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Persistent link: https://EconPapers.repec.org/RePEc:lpe:queout:201601
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